Coast Guard Faces Utility Shutoffs as Shutdown Depletes Funds

Key facts

• Coast Guard will run out of funding to pay personnel on May 1.
• First missed paychecks expected May 15.
• Over $300 million in unpaid obligations.
• More than 6,000 utility bills unpaid, totaling $5.2 million.
• 43% of housing units have invoices more than 30 days past due.
• Water outages hit Port Huron, Michigan, and Station Channel Islands, California.
• Natural gas lines temporarily locked at Air Station Barbers Point, Hawaii.
• Power outage at recruiting station in St. Louis, Missouri.

Lights Out at Coast Guard Stations

The U.S. Coast Guard, now 76 days into the longest government shutdown in American history, is unable to pay its bills. Utility companies have begun shutting off water, electricity and natural gas at duty stations and housing units across the country, as the service owes more than $300 million in unpaid obligations. In the past week alone, water outages hit duty stations in Port Huron, Michigan, and Station Channel Islands, California. Air Station Barbers Point, Hawaii, had its natural gas lines temporarily locked. A power outage at a recruiting station in St. Louis, Missouri, forced officers to operate by flashlight until electricity could be restored. Electricity was also cut off to the residence of a Coast Guard rear admiral in New Orleans, forcing his family to drive to a hotel until service was restored. That residence is one of nearly 1,000 Coast Guard housing units at risk of electricity shutoffs because of unpaid bills.

Commandant Calls Situation Unacceptable

Coast Guard Commandant Adm. Kevin Lunday described the crisis as "unbelievable" and "like a horror movie" in an exclusive interview. "It's unacceptable," Lunday said. "I think the American people would be furious to know this is happening." Lunday revealed that more than 6,000 utility bills have gone unpaid because the Department of Homeland Security is not funded. "We have over 6,000 utility bills that have been unpaid because DHS is not funded. And so, now we're starting to see electricity, water, natural gas, other services shut off that are impacting not only our operational units and bases where our people work, but starting to impact where people live," he said. In many cases, utilities are only restored after Coast Guard personnel call providers and beg for leniency. "In most cases, the people we're talking to … those providers are turning it back on, even though they're not being paid," Lunday said. "I don't know how long that's going to last."

Families and Crews Bear the Brunt

Jessica Manfre, a Coast Guard spouse for 18 years, said the utility shutoffs are not isolated incidents. "When I heard that water is getting shut off at my friends' stations and they're having to call city officials to beg to have it turned back on because bills aren't getting paid," she recounted, "I knew this shutdown was different." Lunday emphasized the operational impact: "These are stations where our crews are standing by to respond at a moment's notice to any Mariner in distress or any threat to the nation. And they launch 24/7, 365 — and suddenly, the lights go out or they don't have water." The shutdown has now stretched 75 days since funding lapsed at the Department of Homeland Security. Unlike military branches funded through the Defense Department, the Coast Guard falls under DHS, making it vulnerable when DHS funding lapses.

Unpaid Bills and Missed Paychecks Loom

The Coast Guard will run out of funding to pay personnel on May 1, with the first missed paychecks expected May 15. Across the service, 43% of housing units have invoices more than 30 days past due. The total unpaid utility bills amount to $5.2 million. Lunday expressed deep frustration: "This is incredibly frustrating. In fact, I would say our workforce, our men and women and their families, are furious." He added that the situation is more than a breach of trust: "Our Coast Guard men and women, whether they're active duty or reserve military civilians, they've stepped forward and taken an oath to support and defend the Constitution. What they expect in return is just to be paid and provide services." They do not expect "to have to worry about whether their families are going to be taken care of."

A Service in Crisis

The Coast Guard's unique position under DHS rather than the Defense Department has left it exposed during the shutdown. While other military branches continue to receive pay, Coast Guard personnel face the prospect of working without compensation. Lunday noted that the shutdown has already affected operations, with crews responding to emergencies in the dark or without water. The commandant warned that the situation could worsen if funding is not restored soon. "It seems like a horror movie, but it's actually happening. It's almost unbelievable," Lunday said.

The bottom line

• The Coast Guard will run out of funding to pay personnel on May 1, with missed paychecks starting May 15.
• Over 6,000 utility bills are unpaid, totaling $5.2 million, leading to water, electricity and gas shutoffs at stations and housing.
• 43% of Coast Guard housing units have invoices more than 30 days past due.
• Utility shutoffs have affected stations in Michigan, California, Hawaii, Missouri and Louisiana.
• Commandant Adm. Kevin Lunday called the situation unacceptable and warned that provider leniency may not last.
• The Coast Guard is vulnerable because it falls under DHS, not the Defense Department.